Tsogo Sun H1 profit up 20%
The hotels and casino operator was helped by an acquisition that offset slow revenue in SA.
JOHANNESBURG - Hotels and casino operator Tsogo Sun reported a 20 percent rise in first-half profit on Thursday, helped by an acquisition that offset the slow revenue from gambling and leisure travel.
Tsogo Sun, in which SABMiller and Hosken Consolidated Investments each have a nearly 40 percent stake, said headline EPS totalled 81.3 cents in the six months to end-September compared with 68 cents a year earlier.
Headline earnings are the main profit measure in South Africa and strip out certain one-off items.
Tsogo Sun and smaller rival Sun International are struggling to fill up rooms as the government and corporates spend guardedly due to weak economic growth prospects while high household debt levels have made consumers wary of gambling and leisure travel.
In a bid to offset slowing growth at home, Tsogo Sun paid R700 million earlier this year to buy a hotel in Nigeria and a further R300 millionto expand its Mozambican hotel.
South Africa cut its growth expectations for this year to 2.1 percent from 2.7 percent as labour strikes, slower consumer spending and power constraints weigh on the continent's biggest economy.